The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-10-26
STILL AT WORK.
The Pacific Investigation
Rolls Slowly Onward.
WHAT BECAME OF THE $751; 900
press COmpaHies-Jo Joining the
SScessfonfsts.
Union Pacific Investigation

NEW YORK, October -Eppinger n.
Nichols detailed the organization and
construction of the first hundred miles
of the Atchison & Pixies Peak Rail
road, and said he considered that the
road had a perfect right to consolidate
OF land should go to the road with
VIII ch 1t was merged.
Witness expia ned the difficulties
they had in trying to fulul thu govern
ment requirements, ana have finally
found it impossible to fully carry them
out. Only oue-tenth OF the lands
which were 10 be granted came
to them Witness said that tie
statute permitted the consolidation.
In the consolidation with the Atchison,
Colorado & Pacific, among the con-
trolling powers were Oliver Ames, K.
NJ. Pomeroy, Erastus Corning,
Chauncey Depew and Henry Willard
William G Victim re. John A Stuart,
Governor William ClaflIn and a. ).
Barnes. The board employed, among
many others, Thomas A. Hendricks
and Reverdy Johnson, but not when
they were in Office, before the reorgani-
cation. When he came in, 400 FIRST
mortgage bonds were issued to those pre-
Vlously In power, tut he never found tn
reason for it. This obligation was made
conditional when he and his friends
went into the company. Witness never
received any of the $500 bonds. The books
of the construction of the road, known
as the Osborn books, were lost. No
other money save the bonds, was dis
bursed, except for compensation. VII
Lrbuted, except for a return, but the
bonds were issued in consideration of
loans. Of $50 600 which was put into
the cOmTsny for three or four months a
bond would be given in addition TO the
interest. About seventy five bo1ds were
so issued. Governor AmeS kept a
memorandum of the roads trans
actions in a note book. BETWEEN 1870
and 1879 the first mortgage bond had TO
be funded. When witness and his
friends resolved 10 run the road to Den
Yer, Jay Gould stepped in ana paid $3.50
per share for the stock, that was of
| little value after the sale was made.
Witness. who conducted it, was paid
$50 600 for his legal services. When
he went to Washington III 1853 to
see about the bill Tor the relief of
the central branch, MIR. Nichols inter
viewed the Congressman. No money
was given to Congressman, but some
was expended in dinners for them at
| the Arlington. These were given for
the purpose of getting acquainted with
the members and talking about the
bill. Between January and J uly, 1880,
| $23, AL was expended for such incidental
expenses. William NJ. EVarts was paid
a fee of $1,000. Two items of 81 ,00U
| trh h
! Nichols said, were probably for some
political operations of Mr.. Pomeroy.
| Nichols said any differences from the
books of the Central branch to the
! effect that he had not paid the full
value for all the stock issued to him,
! we're incorrect. He paid for the hrst
at the rate of $3.50 share and afterwards
| $40 share. Tbs books showing that
| TOR l, GIG shares OF stock issued at one
time and 499 at another, he had only
! paid S62 100 to the company could not
! be right. He believes he had got shares OF
his own and 100 shares of his fathers
estate, part of which he transferred to
| Oliver Ames. Nichols said he paid at
the rate of 500 per share on the stock
received. He could not Understand
why the books did not show any pay
ment by him for the 1919 shares at
one time, nor could he explain why he
should pay its par value for stock when
Gould was about to buy in the stock at
$3.50, and while stocks were selling as
low as 81 cents on the dollar.
Commissioner Anderson astonished
the witness by asking him what had be-
come of the $13l,000 charged against
him on the books.
Witness thought it must have been
for incidental expenses. Witness
thought the Central branch was yet
entitled to the government lands 100
miles beyond the western terminus of
the road. He did not believe the fact
that they had not carried their road
that distance made any difference.
They had filed their maps and were ex-
onerated from the continuance of the
road.